Opening a bank account is mostly paperwork. The part worth your time is comparing fees before you sign up, so you don’t end up paying every month for an account you picked in a hurry.
What You’ll Need
- A government-issued photo ID (driver’s license, passport or state ID).
- Your Social Security number or ITIN.
- An opening deposit — often small ($0–$25), and sometimes waived for student accounts.
- Sometimes, proof of address, such as a lease, a utility bill or mail addressed to you.
Requirements differ from bank to bank, so check the account-opening page of the bank you choose before you go. If you’re under 18, most banks need a parent or guardian to open the account with you.
Step by Step
- Pick the type of account. Start with a checking account if you’re only opening one.
- Compare two or three banks on the fees below, ATM access and how good their app is.
- Apply online or at a branch with the documents above.
- Make your opening deposit.
- Set up the basics: the bank’s app, direct deposit for any paycheck, and low-balance alerts.
Checking vs. Savings
- Checking account — for money you’ll spend soon. It comes with a debit card and handles direct deposit, bill pay and everyday purchases.
- Savings account — for money you’re setting aside. It earns some interest, but some banks limit how many withdrawals you can make each month.
Most people end up with both, but you don’t need to open them at the same time.
Fees to Check Before You Sign Up
- Monthly maintenance fee — often waived if you keep a minimum balance, set up direct deposit, or are a student.
- Overdraft fee — charged when you spend more than you have. Ask whether the bank offers accounts with no overdraft fees, or lets you turn overdraft coverage off so purchases are simply declined.
- ATM fees — using another bank’s ATM can cost you twice: once from that ATM’s owner and once from your own bank.
Every account has a fee schedule (usually a short PDF on the bank’s website). Read it before you open the account, and ask about a student account if you’re enrolled in school.
Tip: Turn on low-balance and large-purchase alerts in the app. They’re the easiest way to avoid an overdraft and to notice a charge you didn’t make.
Bank vs. Credit Union vs. Online-Only Bank
- Traditional bank — the widest branch and ATM networks. Good if you like banking in person.
- Credit union — member-owned and not-for-profit, often with lower fees and better rates, but fewer branches. Membership may depend on where you live, work or study.
- Online-only bank — no branches, which usually means lower fees and better interest. Everything happens in the app, and depositing cash can be difficult.
All three are equally safe as long as the institution is federally insured — by the FDIC for banks or the NCUA for credit unions — which protects your deposits up to $250,000. Check for that insurance before opening an account anywhere unfamiliar.
Common Mistakes
- Choosing an account without reading its fee schedule.
- Leaving overdraft coverage on without knowing what each overdraft costs.
- Letting the balance drop below the minimum that waives the monthly fee.